Supreme Court- Venture Global Engineering v. Satyam Computer Services Ltd. and Anr.

Appellant-Company and Respondent No.1- entered into a Joint Venture Agreement. Disputes arose between the parties and a Sole arbitrator was appointed by the London Court of International Arbitration. Arbitrator passed an award directing the Appellant to transfer the shares to Respondent No.1. Thereafter, Appellant filed a suit before the First Additional Chief Judge seeking declaration to set aside the award and permanent injunction on the transfer of shares under the award. District Court passed an ad-interim ex parte Order of injunction. Respondent No.1 filed an appeal before the High Court, which was dismissed. Hence, present appeal. Held, that provisions of Part I of the Arbitration and Conciliation Act, 1996 would apply to all arbitrations including international commercial arbitrations and to all proceedings relating thereto unless the parties by agreement, express or implied, exclude all or any of its provisions. Further, Judgment-debtor cannot be deprived of his right under Section 34 of the Arbitration and Conciliation Act, 1996 to invoke the public policy of India, to set aside the award. In present case, Award had an intimate and close nexus to India as company was situated in India and transfer of "ownership interests" shall be made in India under the laws of India. Therefore, if Respondent No. 1 was not prepared to enforce the award in spite of this intimate and close nexus to India, the Appellant would certainly not be deprived of the right to challenge the award in Indian Courts.


Source Manupatra